Trade of the Week: SMH

Options, Technology Stocks, Videos


On an active day this past week we saw double the normal amount of options activity in VanEck Vectors Semiconductor ETF (SMH). SMH is a popular gauge of the semiconductor market and also generally is actively traded by options traders. It appears someone rolled a massive in-the-money covered call in SMH, from May to August.

This could be a neutral to bullish indicator due to the logjam in the chip industry getting sorted out over the next few months. 10,000 options were traded against 1 million shares with over $23 million collected in premium from the August calls.

Getting Hot Trades on Stocks Like NIO and TSLA

One of the more interesting stock market stories (before the GME short squeeze) has been the rise of TSLA challenger NIO. Shares for both were loosely correlated for most of 2020... until NIO was upgraded by JPMorgan in the fall. Trading volume and options activity have taken off creating some interesting trade set-ups. Here's how I'm finding those trades and making them with extra cash sitting around the house.

Click here for details.